Practus’ performance improvement services assisted the construction company in monitoring the performance and reducing billing delays by 50%.
|Client Name||Industry||Ownership||Management||No. of Employees||Size||ROI On Fee||Project Duration|
|A Construction Company||Real Estate||PE-Backed||Professional||200-250||$100 million||6x||9 Months|
About The Company
Build Well is a reputed name in the civil construction/ projects space and has been in existence for over 5 decades with revenues over $100 million. The company has been at the forefront of several prestigious commercials, residential and retail projects both in India and overseas. Build Well is backed by a leading PE fund.
- Practus’ role was to strengthen the Finance and Internal control systems and to specifically build and monitor cash flows and budgets across various projects and sites in India. Practus was required to monitor and raise red flags when there were deviations relating to project payments as compared to the budgets and also to strengthen controls to reduce invoicing, certification delays, speed up collections, and improve site-level stock and accounting controls.
- Assistance in porting all 35 open projects from legacy ERP to a new ERP.
- Tracking of Work Orders to vendors, % of complete release of funds against the progress of work done, etc.
- Tracking of the utilization of aggregates, cement, and other materials at the side, labor utilization and machinery (cranes, excavators, etc.) utilization.
- Weekly MIS of physical and cost progress. Comparison of monthly actual vs budget cost.
- Implemented concept of budget cost for actual work done vs actual cost for actual work done.
- Dealing with multiple UOMs at vendor end: quantity for steel, cement, number/skill for labor, piece rate (rs/psf) for specific finishing jobs.
- Processes for requisition authorization, PO raising and approval, GRNs at the site, and final invoice approval.
- Tracking of cash inflows and outflows per project and not allowing cross-subsidization.
- Practus team took over the responsibility as the ‘Cost Control’ function at Build Well.
- The Practus team interacted with the site–level costing, projects, accounting, and stores teams to review, recommend and implement changes at the site level.
- Timely submission of MIS reports provided visibility to the board and investors on the true state of business performance of the company.
- By tightly monitoring the performance and forecasting project cost overruns Practus was able to diligently keep the variance at a minimum.
- Practus’ involvement resulted in a reduction of billing delays by 50% and resulted in lower billing delays.